Who bears the costs of mediation in a Circle K dispute?

According to Circle K's 2025 Franchise Disclosure Document, in the event of a dispute requiring mediation, each party involved will bear their own costs. This means that Circle K franchisees are responsible for covering their individual expenses related to preparing for and participating in the mediation process, such as attorney fees, travel costs, and any expert witness fees. The fees charged by the mediator will be shared equally between the parties.

This arrangement is fairly standard in franchise agreements, as it ensures that both parties have a vested interest in resolving the dispute efficiently and cost-effectively. By requiring each party to cover their own costs, it discourages frivolous claims and encourages a more collaborative approach to mediation. Sharing the mediator's fees promotes neutrality and fairness in the process.

For a prospective Circle K franchisee, this means they should be prepared to allocate funds for potential mediation expenses if a dispute arises with Circle K. It's prudent to factor in these potential costs when assessing the overall financial viability of the franchise. While mediation is generally less expensive than litigation, it can still involve significant expenses, particularly if the dispute is complex or requires extensive preparation.